A Future Made in Australia is impossible with net zero
The purpose of this letter is to provide research and analysis conducted by the Institute of Public Affairs “the IPA”) to the Senate Economics Legislation Committee (“the committee”) as it conducts its inquiry into the Future Made in Australia Bill 2024 and the Future Made in Australia (Omnibus Amendments No. 1) Bill 2024 (“the bills”).
The Future Made in Australia policy plan aims to maximise ‘the economic and industrial benefits’ of the net zero transformation and to make Australia into a ‘renewable energy superpower’. This would require substantial government intervention and $22.7 billion in government spending on what would otherwise be economically unviable manufacturing projects, in the hope of encouraging subsidiary private funding.
Whilst the promotion of domestic Australian manufacturing is critical, support must be based on two clear criteria: that the industries targeted are economically viable and competitive, and must be in promotion of the national interest. Government subsidisation of the manufacturing of renewable technologies fails both criteria.
Further, it is the policy of net zero itself, along with other renewable and emissions mandates, that have dramatically increased the cost of energy, and therefore of production, causing the offshoring of Australian manufacturing and industry.
In addition, the effect of the purusit of net zero is to re-oirent global economic supply chains around China, and away from the West, including Australia. China is the world’s dominant producer of wind turbines, solar panels, and of the processing of critical and rare earth
minerals.
Analysis of the bills and of ‘Future Made in Australia’ by the IPA finds:
- The number of jobs created by Future Made in Australia will not come close to replacing the number of jobs destroyed by net zero.
- Future Made in Australia will further erode Australia’s economic competitiveness.
- The government should abandon its commitment to net zero and intermittent renewables, and instead remove barriers to the further development of Australia’s natural competitive economic advantage in the resources sector.
